cash drag

noun

A negative impact on investment returns caused by holding a portion of a portfolio in cash instead of investing it in higher-returning securities or credit.

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Meanings

nouncash drag (countable and uncountable, plural cash drags)

plural cash drags · alternative cash-drag · alternative cashdrag

  1. countableinformaluncountablebusinessA negative impact on investment returns caused by holding a portion of a portfolio in cash instead of investing it in higher-returning securities or credit.
Cite this entry
APA

cash drag. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/cash%20drag

MLA

“cash drag.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/cash%20drag. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “cash drag,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/cash%20drag.

Source: cash drag on Wiktionary, CC BY-SA 4.0.